Acquired, an excellent long-form podcast that covers great businesses and their history, recently did an interview with Charlie Munger. It is possibly his only long-form podcast interview ever.
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https://medium.com/the-post-grad-survival-guide/the-narrative-fallacy-9bb16c81457
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So should we not belive success stories of companies or strategies?
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You canât make this shit up even if you wanted to. 
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Can somebody give me references where I can read how day trading is compared to value investing? My brother is very much going into trading and I want to give him some valid point to make him understand.now I usually quote Warren Buffett and Charlie Munger and other value investors and he quotes some guys named Taleb. I may be little biased towards long term value investing and generating capital with my profession and then compunding it. But I seriously want to understand can day trading actually work for a living. Any resources that can help me under both sides of this coin is welcomed.
Thank you.
You can read Pat Dorsey book. In initial chapter itself , he has explained how you can not make big money from trading stocks instead of investing.
@mzambare why do you want to convince your brother that your was is the right way and his the wrong one?
Below is a dated list of investors, traders etc and their long-term CAGR returns. You will realise that there are many ways to make money in the markets.
It is best to encourage everyone to follow what style comes naturally to them and keep experimenting with different styles. The only thing is to ensure adequate risk management so they do not blow up their capital (which can be done by both traders and investors alike).
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I am saying this because he is doing that also in a wrong way. I personally donât feel trading can be done for living by retail investor (trader). I am sure most of the name on the lists are some hedge fund managers or other fund managers or someone else who has a fat bank balance and trading account balance. Even if a retail Trader get 1 big trade right it wonât like make him wealthy and financially free.
And to say that âIâll make small traders to make my capitalâ is a stupid proposition because nobody can be right everytime. And just like 1 trade could go good 1 trade could go bad as well.
I know there are many ways of making money in market but this trading is definitely not the one in which the retail persons make money.
Here I am mentioning specifically about day trading and option trading.
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I can totally understand you. Being a brother its very difficult to see that they are trying to play low probability game to earn day to day bread. Unfortunately when it does not happen they leverage, get into more wrongs and get into a difficult situation where we are not able to help. Need to differentiate day to day bread earning with wealth creation.
You cant say this is a limit as even one small win will make them think they can do well but they lose the sight of small losses and sometimes big ones also.
If he is doing it in a wrong way then itâs different. But I know a lot of traders who have made tremendous wealth. But in that case, trading needs to managed like a business.
Not all trades need to be right. You can direct your brother to read good books on trading to improve his process.
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Which books would you suggest in that aspect sir. Even I want insight on this.
All matters is how efficient leverage is used if we are using leveraged portfolio as its said that âstock doesnât know you own itâ same is stick also doesnât know you own it with leverage. Keeping a long term horizon about what you buy and with a good safety of margin has high probability of having favourable outcome.
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Some good books would be:
Trade Like A Stock Market Wizard â Mark Minervini
Think & Trade Like a Champion - Mark Minervini
The New Trading for a Living - Alexander Elder
How to Make Money in Stocks â William OâNeill
Technical Analysis of The Financial Markets â John Murphy
Come Into My Trading Room - Alexander Elder
Mechanical Trading Systems â Richard Weissman
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Very good overview without too much technical details.
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My head is spinning from reading it. While I consider myself a value investor, I have never really analysed a balance sheet. Hats off to the Prof. He really makes you look at the company from so many angles.
Thanks for sharing it.
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Poor Charlieâs Almanack: The Essential Wit and Wisdom of Charles T. Munger (stripe.press)
Free to read (and listen)
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G S Bhogalâs excellent collection of Mental Models.
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Great to read about a fundâs history and its process of identifying outlier entrepreneurs.
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